Use the Table for the Question(s)below

question 69

Multiple Choice

Use the table for the question(s) below.
Consider the following covariances between securities:
-Which of the following statements is FALSE?

• A)We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better in terms of both expected return and volatility.
• B)We can rule out inefficient portfolios because they represent inferior investment choices.
• C)The volatility of the portfolio will differ,depending on the correlation between the securities in the portfolio.
• D)Correlation has no effect on the expected return on a portfolio.

---

Definitions:

Fill Rate

The percentage of customer demand that is met without backorders or stockouts, reflecting a company's ability to satisfy orders with available inventory.

Customer Fill Rate

A measure of the ability of a supply chain to deliver the requested product in the quantity and time agreed upon by the customer.

Safety Inventory

Additional stock that is kept in inventory to protect against uncertainties in demand or supply.

Replenishment Cycles

The process and timing involved in restocking goods or inventory to maintain adequate supply levels.